If a Major Proportion of the Additional Income Generated in an Economy

question 69

Multiple Choice

If a major proportion of the additional income generated in an economy goes into household consumption:

• A) the value of intangible assets in the economy will increase.
• B) the value of old assets that are disposed will fall.
• C) the economy's potential GDP will increase.
• D) the level of gross capital formation will be low.

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Definitions:

Lost Profits

Potential earnings that were not realized due to a wrongful act or breach of contract.

Buyer Breaches

Situations where the buyer fails to fulfill their contractual obligations, potentially leading to legal consequences or contract termination.

Liquidated Damages

An amount, stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.

Remedy

The means by which the enforcement of a right or the redress of a wrong is obtained.